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Enjin Co.,Ltd. (7370) AI Stock Analysis

JP:7370

Enjin Co.,Ltd.

(TSE/TYO:7370)

Select Model
Rating:53Neutral
Price Target:JPY 727.00â–²(1.39% Upside)
Action:reiterated
Date:10/14/26

The overall score is constrained by significant deterioration in financial performance, including declining revenues, compressed margins, and negative cash flows. The company's debt-free balance sheet provides stability, but operational trends are a major concern. Technicals are neutral-to-bearish, and while the high dividend yield offers some valuation support, it is not enough to offset the fundamental headwinds.

Positive Factors
Very low leverageExtremely low leverage gives Enjin substantial financial flexibility and limits interest-related strain. The conservative balance sheet can help the company withstand weaker operating periods while preserving capacity to invest, maintain operations, or return capital without relying heavily on additional borrowing.
Negative Factors
Negative latest cash flowNegative operating and free cash flow alongside positive net income signals materially weaker cash conversion in the latest period. If sustained, this could reduce internally funded investment capacity, increase reliance on balance-sheet resources, and make reported earnings less dependable as a measure of financial health.

Enjin Co.,Ltd. (7370) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:7370-10.23%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 4.85B
Dividend Yield
5.56%
Average Volume (3M)
3,691
Price to Earnings (P/E)
20.1
Beta (1Y)
0.25
Revenue Growth
6.26%
EPS Growth
-50.68%
Country
Japan
Employees
149
Sector
Communication Services
Sector Strength
60
Industry
Advertising Agencies

Enjin Co.,Ltd. Business Overview & Revenue Model

Company Description

Enjin Co., Ltd., established in 2006 and based in Tokyo, Japan, offers specialized public relations (PR) assistance. The company provides essential communication support to a diverse clientele, including corporate entities and their management teams,...

How the Company Makes Money

Detailed, company-specific information about Enjin Co.,Ltd.’s revenue model and key revenue streams (e.g., breakdown by service line, contract structure such as retainers vs. project fees, performance-based components, major partnerships, and materia...

Enjin Co.,Ltd. Financial Statement Overview

Summary

Financial performance is under pressure. Revenue declined 7.6% and net income fell 53.6%, with margins compressing. Operating and free cash flow turned negative. The balance sheet is a strong point with virtually no debt, but declining profitability and negative cash generation weigh heavily on the overall financial health.

Income Statement

35Negative

Balance Sheet

80Positive

Cash Flow

30Negative
Financial statement breakdown
BreakdownTTMMay 2025May 2024May 2023May 2022May 2022
Income Statement
Total Revenue2.95B2.70B2.92B3.27B3.07B3.48B
Gross Profit1.90B1.87B2.25B2.59B2.49B2.85B
EBITDA431.28M423.17M925.52M1.11B1.23B1.35B
Net Income249.46M250.25M539.21M749.01M828.64M879.40M
Balance Sheet
Total Assets5.26B5.12B5.30B5.05B4.88B5.07B
Cash, Cash Equivalents and Short-Term Investments2.02B1.74B4.13B3.54B4.01B3.59B
Total Debt445.68M66.91M0003.38M
Total Liabilities1.04B691.47M659.29M697.45M1.06B904.06M
Stockholders Equity4.22B4.40B4.64B4.36B3.82B4.17B
Cash Flow
Free Cash Flow-63.51M-63.51M652.06M183.71M944.81M672.86M
Operating Cash Flow-41.26M-41.26M694.04M256.31M1.02B704.28M
Investing Cash Flow-1.53B-1.53B163.89M-191.09M-254.06M-592.62M
Financing Cash Flow-814.36M-814.36M-257.34M-585.79M1.75B-529.60M

Enjin Co.,Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price717.00

Price Trends

50DMA714.78Positive
100DMA712.27Positive
200DMA747.71Negative

Market Momentum

MACD0.43Negative
RSI58.86Neutral
STOCH88.11Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7370, the sentiment is Positive. The current price of 717.00 is above the 20-day moving average (MA) of 714.30, above the 50-day MA of 714.78, and below the 200-day MA of 747.71, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 88.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7370.

Enjin Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (60)

Financial Indicators

JP:7370 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7068JP:706890OutperformJPY 12.81B9.05―2.80%11.04%29.58%
JP:7354JP:735468NeutralJPY 17.47B9.39―1.91%2.86%70.83%
JP:4170JP:417064NeutralJPY 1.78B-13.94――-3.83%-17.57%
Sector *60Neutral$48.67B4.58-11.27%4.14%2.83%-41.78%
JP:7370JP:737053NeutralJPY 5.26B20.08―5.56%6.26%-50.68%
JP:2491JP:249149NeutralJPY 13.12B-3.57―7.88%-59.47%-181.86%
JP:6094JP:609448NeutralJPY 8.85B4.54――10.01%―

* Communication Services Sector Average

Performance Comparison

-25%0%25%50%JP:7370JP:2491JP:4170JP:6094JP:7068JP:7354Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7370 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7370Enjin Co.,Ltd.720.00-93.51-11.49%
JP:2491ValueCommerce Co., Ltd.406.00-233.20-36.48%
JP:4170Kaizen Platform, Inc.104.00-72.00-40.91%
JP:6094FreakOut Holdings, Inc.495.003.000.61%
JP:7068Feedforce Group Inc.535.00-104.57-16.35%
JP:7354Direct Marketing MiX Inc.367.00111.1143.42%

Enjin Co.,Ltd. Corporate Events

Enjin Co., Ltd. Posts Strong Sales Growth but Forecasts Profit Decline for FY2027

Oct 9, 2026

Enjin Co., Ltd. reported consolidated net sales of ¥755 million for the three months ended August 31, 2026, a 48.6% increase year on year, while operating profit rose modestly to ¥35 million and ordinary profit fell 29.8%. Profit attributab...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 14, 2026